BAYONNE -- A resolution is expected to be introduced at Wednesday's City Council meeting that would direct 5 percent of all PILOT payments to the city school district, according to city officials.

The new resolution would coincide with an expected vote on the payment-in-lieu-of-taxes deal for the Resnick redevelopment project -- a 10-story, mixed-use proposal at the former site of the Resnick's Hardware store, which has since relocated to 800 Broadway near the corner 36th Street.

The ordinance would apply to all tax-abated projects in Bayonne moving forward and would be a 90-5-5 percent split -- 90 percent of the PILOT payment from the developer goes to the city, 5 percent to the county and 5 percent to the school district, according to city business administrator Joe DeMarco.

"This is our model going forward," said City Council President Sharon Nadrowski. "Everyone's going to have to contribute something to the school system."

In normal tax abatements, 95 percent goes to the municipality and 5 percent goes to the county, with the schools getting nothing. Under regular property taxation, taxes are split between city, county and schools, with each municipality divvying up the taxes different for their needs.

In Bayonne, 43.76 percent goes to the city, 40.25 percent to the schools and 15.99 percent to the county, under normal property taxation, according to Joe Nichols, tax assessor for Bayonne.

Nadrowski and First Ward Councilman Tommy Cotter said this ordinance would alleviate their concerns about the underfunded school district.

"Tommy Cotter and I had been discussing it for awhile, about what we can do for the schools," Nadrowski said.

Other council members still have their concerns however -- including third ward councilman Gary La Pelusa, Sr., who said he appreciates the 5 percent payment but doesn't think it's enough for the school district.

"In my opinion -- it's better than the 0 percent -- but I don't think 5 percent is enough," he said. "It doesn't come out to a lot of money over 25 years."

In an interview with The Jersey Journal, Nadrowski said she still expects there to be some push-back from residents concerned about tax issues in light of the new developments, but said she believes abatements are beneficial to the city.

"You have to understand that the point of a PILOT is to help areas that aren't developed," Nadrowski said. "Although residents feel they're paying a higher percentage (in taxes than those who own tax-abated properties), we're still generating three times the amount of money than if it were to stay as it was.

"It's also important that the residents know that ... the success of the development means more success to the cities," she added. "There are guidelines in there that say if their revenue percentage goes up, what they pay us goes up. If they exceed their expected revenue, we get a piece of that. So there are a lot of things in there to sort of keep it fair (to the city)."

The new resolution will be introduced along with the financial agreement for the Resnick plan.

The abatement for the project would run for a period of 30 years from the date of the agreement and would bring in 12 percent of the development's annual gross revenue in payments to the city, county, and now potentially the school district.

The payment would increase to 13 percent around year 13, according to the agreement. The development is expected to generate more than $3 million annually in gross revenue.